ICE White Sugar Futures News
ICE Sugar Futures Price
According to Barchart, ICE White Sugar Futures on ICE Futures Europe (IPE) closed with a decline of 6.50 on 13th February 2024. This marks a decline of 0.98% for the ICE White Sugar Futures.
ICE Sugar Futures (Intercontinental Exchange US, NYBOT), also known as NYBOT Sugar No. 11 Futures, also closed with a decline of 0.26 on 13th February 2024. This marks a decline of 1.10% for the ICE Sugar Futures price.
ICE Sugar Futures Prices Under Pressure from Stronger Dollar
Barchart reported that the decline in sugar prices was attributed to a rally in the US Dollar, which reached a three-month high, prompting selling in sugar futures.
One factor contributing to the bearish sentiment in sugar markets is the significant increase in Brazil's sugar production. UNICA reported on 25th January that Brazil's Center-South sugar output surged by 148.6% year-on-year in the first half of January to 48,000 metric tons (MT).
Sugar output for the 2023/24 crop year through mid-January also rise by 25.5% year-on-year to 42.099 million MT. Additionally, a higher proportion of sugarcane is being crushed for sugar production compared to ethanol production.
StoneX revised its 2023/24 global sugar surplus estimate upwards to 3.4 million MT from a previous estimate of 730,000 MT, mainly due to increased sugar output in Brazil. However, concerns about global sugar production have emerged after the Thai Sugar Millers Corp reduced the high end of its Thailand 2023/24 sugar production estimate and projected a decline of 32% year-on-year to a 17-year low of 7.5 million MT due to severe drought conditions.
Reduced sugar production in India is also contributing to bullish sentiment. The Indian Sugar Mills Association reported a 3.2% year-on-year decline in India's 2023/24 sugar output during the October-January period to 18.7 million MT. It is forecasted to have a decrease of 9.7% for the full marketing year.
India's poor monsoon rainfall and extended restrictions on sugar exports are exacerbating concerns about tight global supplies. Furthermore, signs indicating the continuation of India's ban on sugar exports and recent announcements of export taxes on molasses from sugar refining in India are supporting sugar prices.
Additionally, the possibility of an El Nino weather pattern disrupting global sugar production is viewed as a bullish factor, as it typically brings adverse weather conditions to major sugar-producing regions such as Brazil and India.
Despite projections of record global sugar production by the United States Department of Agriculture (USDA), concerns about tightening global sugar stocks persist, with forecasts indicating a potential deficit in the 2023/24 sugar market.
Trading Sugar Futures on ICE
The Intercontinental Exchange (ICE) provides a range of sugar futures contracts across its different exchanges. Traders can trade ICE White Sugar Futures on ICE Futures Europe (IPE) through Orient Futures Singapore.
In addition to IPE, ICE Futures US (NYBOT) also offers a futures contract for raw sugar, known as the ICE Sugar No.11 Futures.
Beyond sugar futures contracts, ICE extends its offerings to various other commodities futures contracts. These include ICE Futures Singapore (ICE Singapore) Mini Brent Crude Futures, Mini US Dollar Index Futures, Cotton Futures, and more. This presents traders with a diverse range of investment options.
Orient Futures Singapore is futures trading Singapore regulated broker that offers contracts from different futures exchanges and trading platforms.
ICE White Sugar Futures Contract Specifications
The ICE White Sugar Futures Contract has the following specifications:
The ICE White Sugar Futures Contract has a minimum price fluctuation of 10 cents per tonne ($5).
The last trading day of the contract month is the sixteen-calendar day preceding the first day of the delivery month at 17:55. If it is not a business day then the first business day that precedes immediately preceding.
Contract months are for March, May, August, October, and December.
ICE Exchange Trading Hours are as such: 3:45 am – 1:00 pm (New York time)
ICE White Sugar Futures symbol: W
ZCE White Sugar Futures
Apart from ICE White Sugar Futures, Traders can also trade White Sugar Futures Contracts on Zhengzhou Commodity Exchang (ZCE).
China is one of the world’s biggest sugar importers with annual imports of more than two million tons. With the growing global population and increased consumption of food worldwide, white sugar is expected to be one of the most dominant trading products.
ZCE also offer a range of other commodity futures, including PTA Futures, Peanut Kernel Futures, Methanol Futures, Rapeseed Oil and Rapeseed Meal Futures.
Why Trade in White Sugar Futures Contract from Zhengzhou Commodity Exchange (ZCE)?
Sugar contracts are of importance to both traders and the community as they serve as the benchmark for international sugar trading and the price basis for major exporting countries.
With different exchanges trading in white sugar, the opportunity for hedging and Cross Arbitrage is also uncovered, giving traders more avenues for diversification and risk management.
QFI China
To trade ZCE White Sugar Futures, Traders need to go through an overseas intermediary like Orient Futures Singapore, through either the QFI China Scheme or China’s Internationalized Products.
Introduced in 2013, the Qualified Foreign Investor (QFI Scheme) simplifies the application process for international traders looking to invest in China's trading market. This scheme enables international traders to participate in China’s derivative market, facilitating investment opportunities. This includes cross-arbitrage trading, including refined copper arbitrage trading and rubber arbitrage trading.
Find out How to Access China’s Derivatives Futures Market here.
Start Trading With Orient Futures Singapore
Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
